An accelerated growth of inter-regional electrical power transmission trading activities has sharply increased the frequency of transmission congestion and associated price spikes, leading in some cases to significant rise in electricity retail prices, and the bankruptcy of major utilities and power marketing companies.
There are two ways for averting or mitigating this problem: (1) investing heavily to upgrade existing grids and to develop new transmission ties; and/or (2) increasing the available transfer capability (ATC). In addition to public opposition and the high costs of developing new transmission rights of way, the first approach has proved to be elusive.
The second approach requires much less capital investment and is environmentally much more benign. However, there are no currently used or proposed processes for allocating and scheduling transmission service while explicitly increasing ATC for wholesale electricity trade.
The present invention addresses a pressing need for a better way of utilizing existing transmission infrastructures.